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Ethnic Enclaves and the Economic Success of Immigrants - Evidence from a Natural Experiment

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Author Info
Åslund, Olof
Edin, Per-Anders
Fredriksson, Peter

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Abstract

Recent immigrants tend to locate in ethnic ‘enclaves’ within metropolitan areas. The economic consequence of living in such enclaves is still an unresolved issue. We use an immigrant policy initiative in Sweden, when government authorities distributed refugee immigrants across locales in a way that may be considered exogenous. This policy initiative provides a unique natural experiment, which allows us to estimate the causal effect on labour market outcomes of living in enclaves. We find substantive evidence of sorting across locations. When sorting is taken into account, living in enclaves improves labour market outcomes; for instance, the earnings gain associated with a standard deviation increase in ethnic concentration is in the order of 4–5%.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2729.

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Date of creation: Mar 2001
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Handle: RePEc:cpr:ceprdp:2729

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Related research
Keywords: Enclaves Immigration Labour Market Outcomes

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Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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  15. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers 0136, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  19. repec:fth:prinin:441 is not listed on IDEAS
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  22. Lalonde, Robert J. & Topel, Robert H., 1993. "Economic impact of international migration and the economic performance of migrants," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 14, pages 799-850 Elsevier. [Downloadable!] (restricted)
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